Andy Haldane

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Andy G. Haldane
Andy Haldane - Festival Economia 2013.JPG
Haldane in Trento, Italy in 2013
Born (1967-08-18) 18 August 1967 (age 47)
Nationality British
Alma mater University of Sheffield
University of Warwick
Occupation Economist/Banker
For the U.S. Marine Corps officer, see Andrew Haldane.

Andrew G. "Andy" Haldane (born on 18 August 1967) is the Chief Economist and the Executive Director of Monetary Analysis and Statistics at the Bank of England.[1] In 2014 he was named by Time Magazine as amongst the world's 100 most influential people.[2]

Education[edit]

Haldane attended Guiseley School in North Leeds. He received a BA in Economics from the University of Sheffield in 1988 and an MA in Economics from the University of Warwick in 1989.[1]

Career[edit]

Haldane joined the Bank of England in 1989. He worked in Monetary Analysis, on various issues regarding monetary policy strategy, inflation targeting and Central Bank independence. He had a secondment to work at the International Monetary Fund. Haldane's senior experience back in the Bank of England include heading up the International Finance Division and the Market Infrastructure Division. In 2005 Haldane assumed responsibility for the Systemic Risk Assessment Division within the Financial Stability department. In 2009 he became the Bank of England's Executive Director of Financial Stability.[1][3]

Haldane has been widely cited as a leading Bank of England expert on Financial Stability[4][5][6] and is a co-author with Adair Turner and others of the LSE Future of Finance report.[7] His 2012 speech, "The Dog and the Frisbee" [8] -- delivered to the Federal Reserve Bank of Kansas City's annual Jackson Hole meeting -- received wide attention in the financial media[9] and prompted Forbes to describe him as a "rising star central banker".[10] In the speech, Haldane drew on behavioral economics to argue that complex financial systems can't be controlled with complex regulations.

In October 2012 Haldane said the Occupy movement protesters had been right to criticise the financial sector and had persuaded bankers and politicians "to behave in a more moral way".[11][12][13]

Interviewed on the BBC's The World at One radio programme, ahead of Chancellor's 2012 Autumn Statement, Haldane said the financial effect of the bank crisis, i.e. the loss of income and damage to output was as severe as a world war.[14] He feared the cost would fall on the next generation or even the generation afterwards.[14] Public anger was justified as banks had made loans which could never be repaid and these loans were sold on around the world creating the Subprime mortgage crisis.[14] The banks still had undeclared risky assets.[14] In the meantime bankers pay which in 1980 was comparable with a doctor or lawyer had risen by 2006 to four times that value and it needs to fall to that of other professions.[14]

Haldane was celebrated by the Daily Telegraph's Liam Halligan on 4 November 2012 for his conception of a new regulatory framework, which had not yet been implemented as of March 2014.[15] Halligan's recommendation of Haldane for Governor of the Bank of England was not taken up.[15]

Haldane said in a speech on 4 April 2014 to a financial audience that 'too big to fail' risks that are being tackled by reforms at major banks were applicable to the asset-management industry as well. "Their size means that distress at an asset manager could aggravate frictions in financial markets, for example through forced asset fire sales... the next frontier for macro-prudential policy," he said, is the asset-management industry.[16] He introduced the "non-bank, non-insurer globally systemically important financial institutions” (NBNI G-SIFIs) into the lexicon at this event, and detailed the thrust of regulators as "modulating the price of risk, when this is materially mispriced, could be every bit as important as controlling its quantity."[17]

Personal[edit]

Haldane is the co-founder of a charity 'Pro Bono Economics', which aims to broker economists into projects in the charitable sector.[1][18]

Publications[edit]

Haldane has authored more than 70 articles and three books on inflation targeting, central bank independence, international financial crises, financial stability frameworks and payment systems,[1] along with notable analysis critical of the remuneration models that divorce capital control from its ownership in the financial services sector, where stewardship bonuses are rewarded regardless of loss or gains to clients, contrary to rational norms of fiduciary duty.[19]

Books:

  • The Future of Payment Systems: 43 (Routledge International Studies in Money and Banking) with Stephen Millard, and Victoria Saporta (2007)
  • Fixing Financial Crises in the 21st Century (Routledge Studies in the Modern World Economy) (2004)

Notes and references[edit]

  1. ^ a b c d e Haldane biography on Bank of England website retrieved 3 August 2010
  2. ^ http://time.com/70833/
  3. ^ Haldane's bio on VOXEU
  4. ^ Bank of England expert calls the bankers' bluff' The Observer Sunday 20 December 2009
  5. ^ Banking system like South Sea bubble, says senior Bank of England official The Guardian 1 July 2009
  6. ^ 'Big is not better when it comes to banks' BBC 18 December 2009
  7. ^ Adair Turner, Andrew Haldane, Paul Woolley, Sushil Wadhwani, Charles Goodhart, Andrew Smithers, Andrew Large, John Kay, Martin Wolf, Peter Boone, Simon Johnson and Richard Layard (16 August 2010). "The Future of Finance: the LSE report". Retrieved 30 October 2012. 
  8. ^ http://www.bis.org/review/r120905a.pdf
  9. ^ "The Jackson Hole Speech People Should Long Remember," Jason Zweig, The Wall Street Journal, 31 August 2012
  10. ^ Benko, Ralph (22 October 2012). Forbes http://www.forbes.com/sites/ralphbenko/2012/10/22/catching-a-frisbee-is-difficult-the-bank-of-england-tells-it-like-it-is/ |url= missing title (help). 
  11. ^ James Kirkup (29 October 2012). "Occupy protesters were right, says Bank of England official". Daily Telegraph (London). Retrieved 30 October 2012. 
  12. ^ Hannah Kuchler and Claire Jones (30 October 2012). "BoE’s Haldane says Occupy was right" ((registration required)). Financial Times. Retrieved 2012-10-30. 
  13. ^ "A leaf being turned" - speech by Andrew Haldane: 29 October 2012 "Socially useful banking" conference at Friend’s House, Euston, London on 29 October 2012.
  14. ^ a b c d e "Bank crisis impact bad as world war, Andrew Haldane says". BBC News. 3 December 2012. Retrieved 3 December 2012. 
  15. ^ a b telegraph.co.uk: "A man with the vision to lead the Bank forward" (Halligan) 4 Nov 2012
  16. ^ reuters.com: "BoE's Haldane says funds can also be 'too big to fail'" 4 Apr 2014
  17. ^ bloomberg.com: "BOE’s Haldane Says Mispriced Assets May Present Stability Risk" 4 Apr 2014
  18. ^ Pro Bono economics website: http://www.probonoeconomics.com/
  19. ^ "Haldane’s "control rights (and wrongs)" Cobden Center review (dated 10-11-11) of Wincott Annual Memorial Lecture given at Westminster, 24 October of same year as Executive Director, Financial Stability and Member of the Financial Policy Committee